An organization that is using the cost leadership approach would
A)incur costs for innovative R&D.
B)provide products at a higher price but with lower costs than its competitors.
C)focus on productivity through efficiency improvements.
D)bring products to market rapidly.
E)use a cost plus rather than a target pricing policy.

Question

Quizplus · Accepted Answer

An organization using the cost leadership approach focuses on reducing costs and increasing productivity through efficiency improvements. This allows them to provide products or services at lower prices than their competitors while maintaining profitability. They typically do not invest as heavily in innovative R&D or bring products to market rapidly, as these strategies can increase costs. Additionally, using a cost plus pricing policy is not necessarily indicative of a cost leadership strategy, as the focus is on reducing costs rather than simply setting a price based on costs.

An Organization That Is Using the Cost Leadership Approach Would